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tv   Mad Money  CNBC  April 6, 2021 6:00pm-7:00pm EDT

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big cap pharma today merck. >> dan >> guy pushed amd recently and i like it here >> guy >> great call on gonzaga, mel. snap. >> i'm sorry thanks for wchating "fast money. thanks for watching "fast money. "mad money" with jim cramer starts now my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money my job is not just to entertain but to teach, educate, put it in context. call me at 1-800-743-cnbc or tweet me @jimcramer. every day we discover stocks of
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companies that can do better now that we're averaging 3 million vaccines a day and everyone has a shot at getting well, a shot even on a not so hot dow, the dow declined 97 points and s&p dipped it feels like there is no end to the good news. even better, stocks don't bake in those positives and one fell swoop, instead it takes days and days for good news to work its way into the share prices like the way the news used to travel by train giving you many chances to buy on the way up i've been in this business for 40 years and this is something that you almost never see. i can't remember it. i mean, the confounding slow motion discounting processes a major reason why so many stocks stay buoyant when there is no news the cruise lines, we spoke to
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frank del rio, the ceo of norwegian cruise lines he came out firing he let the cdc have it for refusing to have a conversation with him what it will take to have his ship sail again he's willing to have everyone vaccinated and operate at 60% of the capacity and new air filtration systems in short, norwegians have done everything they could ask for and more and spent nothing at all to the regulators. yesterday del rio threw down the gaunt lant on this show and his stock lead the s&p 500 and return to service in the caribbean and europe and starting in july, to me that's not much of a surprise he said the same thing about america. why would the rest of the world be different any other market it would be a yawner not in this market it sent norwegian stock up another 4.6% unless you've been trading for ages, you don't realize how
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extraordinary this is. think about it, norwegian didn't get approval to sail in the u.s. you can easily argue the stock deserved to go down on that news think about it can you imagine a broker dressing down the scc or a broker blowing up at the fda the shareholder base would have a heart attack, wouldn't it? that's what dell rio is doing. he had it with the regulator and willing to unload in public. the stock would go down in one session but two of them. certainly not rally for two straight days and lead the s&p if you regard this as good news, usually traders sell into good news with norwegian, they're not just buying it but buying it for two straight days like somebody didn't get the memo yesterday. you know what? while we're at it, same deal for the casinos. vegas is doing better and crushing with really strong numbers. much better than ages, days. my response is okay, tell me something i don't know
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yet, when resorts rally for three days in a row on the same news, that's right, each day a new firm comes out with something positive about casinos. put it, the exact same positive. it works every time like a charm. today was giving $131 stock $160 price target people laughed it up wynn is $130 stock i wonder who in their right mind would buy the stock for the same the other guys said? the answer a lot of people what else? every day we get good vaccination numbers and that's most days. some analysts say something positive about a restaurant chain. it's gotten griddy atlantic equities initiated coverage on yum, the parent of taco bell, kfc and pizza hut with not a buy, a hold the stock was at 110 the analyst gave it 118 price target i figured they would sell a
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lukewarm piece of research think about it the stock will go up eight points oh, no, not in this market the stock rallies 3% to 114 swiftly closing in on the price target that hole was a neutral to negative call in my opinion, not a positive this market, uh-uh, it treats any price target boost above the current price as a current call to buy every every day for the last four days, constellation brands reports on thursday. at least a little concerned the stocks run too much going into the quarter when the company sales in texas, which is just a huge market might have been slow by super storm yuri. oh, no, not in this state. each time some analyst says something positive and the same positive, don't get me wrong they have no new information constellation stock rallies. it's as if investors are hearing the good news for the first
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time if someone does it tomorrow, admit i told you about it last night. yesterday gm and ford caught upgrades from wells fargo based on the potential for higher sales. their stocks soared, top performers in the averages even though we know ford could miss numbers thanks to the chip shortage they went up again on a down day. nobody said anything impossible look, in any other market, the short sellers would be swarming around these old school auto makers salivating at the possibility of missed quarters, something because of the chip shortage is a definitely a possibility for ford not in this market this market loves a second day move after a big call. it's like leftovers taste as good as the first course it's like thanksgiving at my house. sometimes you can predict what will happen next two different if ifirms raised r price target for chipotle. the stock jumped 35 points to 1487 work with me
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you have to figure firms with price targets below 1487 or around it will come out tomorrow and raise those targets because they don't want to be left behind and given the way this market operates, that will move the stock up in fact, let me tell you something. i bet chipotle could have a real run now that the actual stores will be open all over the country. i see in the next few days because we have a price target boost, i see this stock taking out 1564 that's right the high on the next few boost and tahey're coming. you'll think me i told you this one. there is a curious case of walmart. today a firm comes out and talks about how walmart plus the big initiative has been sluggish man. we own walmart for my charitable trust and i figured it would get dinged hard after yesterday's big run and was trying to make an execution and my preparation for my actionalertsplus.com conference call on thursday. but then mid morning, we hear
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rumors, just rumors that flip card, their subsidiary they control might come public in the fourth quarter my god, they are really going to crush it because people said over and over again flip court has been a bust. oh, no, not in this tape everyone got excited about it and a stock that looked -- i thought it would be down a couple smackers comes back with a vengeance finishing up 6%. i don't know how long this kind of action can last still, it staggering to realize that a bit of good news can last for days and days and days in this market. the impact, it makes you not want to sell, right? because it's become a virtual circle you don't want to sell, they want to buy. bottom line a rally that doesn't bring out sellers is a crazy good thing and that's exactly what we have now it why i think walmart, yum brands and chipotle can keep running and i expect more of the same from the casinos and cruise stocks no news in the market is new
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news and it's almost always good anthony in new york, anthony >> caller: how are you doing, jim? i'm a long time listener i love your show. >> chill says hi, what's up? >> caller: i want to give a shoutout to my fire house in the bronx, boo-yah. >> boo-yah, absolutely all right. >> caller: i purchased champing world symbol cwh at $29 in december what are your feelings on the stock in 2021 -- >> first, let me tell you something. here is what i feel about anthony in new york. i think anthony in new york is a pretty smart guy because a lot of people are not a believer but you are a believer i think this stock can go even higher why? because horse sense. that's why all right. what if -- i wanted more calls all right. i went on too long about these
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hey, this is -- look at this one. this one tomorrow will get a bunch of price target bumps and it will be to the moon yolo this market has investors feeling gridty and unlike anything i've seen investors are buying good news, not selling it and buying again. that's why i think the rallies and numbers, chipotle, walmart, yum brands, any casino or cruise line will continue on "mad money" tonight, even as vaccinations pick up across the u.s., we must wear masks to curve the epidemic and i know you're probably not going to want this one. it not available tonight, i'm talking with will i am and honey well. to see if they have discovered the future of face masks and not like this, hey, am i protecting you? with the dow and s&p hitting record highs, where do we go next i'm heading off the charts to find out and teaming up to help
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companies in a big way i'm sitting down to learn more about the partnership so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer #madtweets send jim an email to madmoney@cnbc.com. or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.
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we've been told to wear masks pretty much everywhere to stop the spread of covid-19 and this whole time we had a huge problem with non-compliance. something that's because the pandemic became a culture war issue but a lot of us said masks are a hassle and uncomfortable
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and messes up your skin and knocks off your headphones and looks bad. not much can pull off the surgical mask asthetic super mask is just launched by honey well with partnership with will i am. the enptra entrepreneur and musn and honey well will talk more about this thing of beauty welcome to "mad money." >> hey, how are you doing? >> thanks, jim. >> all right, guys, let's go right to work. i was involved with a mask contest and candidly, will, i'm jealous. you have something that's aspirational but in a lot of ways it's got what matters, it's got ventilation and filtration i know this is almost impossible to put together in one mask. how were you able to create it
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>> well, i was -- i have a pretty awesome team that i put together for the past three years and we just try to solve the problem on wearability, come forbility, expressebility and other functionalities like blue tooth because it's hard to talk on the phone with a mask on. you have to project your voice so it competes with the thing that's covering your mouth so we wanted to put all these functionalities together and when we partnered with honey well, they took the filtration to a totally different level. >> yeah, i got to tellyou having done stuff with honey well with john and his group, they are amazing john, i see this as really as just the continued extension of what i see honey well being frankly a good health care company. people better start looking at it like that because this is an example of what nobody else has been able to design. tell us how you got together and where you think this mask can
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go. >> well, i mean, first of all, we got together in the midst of crisis, right? we're all button down latched this point of time and will is traveling for work and we're trying to lean forward to help society and those two streams really collided about midsummer last year by way of introduction by mark. we're thrilled to have the introduction but it's been a terrific jam session we've been grinding every day every week to improve and be ready for launch to make today possible. >> now, will, this mask is more stylish than any one i've seen, frankly, they're all pretty ugly but this one is kind of cool who helped you design it >> there is a fellow by the name of jose fernandez that works at iron head and part of the super mask team officially he designed the head gear and outfits that you see in tron he designed the outfit for the
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"black panther, spiderman" mask so you have a futuristic sifi film because that type of defense and attention to detail and future brought now by jose fernandez. >> i know how hard it is to make these masks. you'll get a mockup and you guys go to work to make it totally functional was this a tough one >> it was a very difficult process but i tell ya, when you bring the best engineers together from will's team and throughout honey well, we found that anything is possible. i think you would agree that it's been pretty consistent with what we've been doing for the last year and much longer in some of these tremendous innovations we've been bringing to market to help in this pandemic crisis, whether that's, you know, the u.v. air cleaners for aircraft or the healthy building technology to bring kids back to schools or our rapid expansion of our n 95 mask
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enterprise, we've been doing all kinds of things along these fronts like the super mask development process, which i think has proven challenging but fun. >> i got to tell you, having worked with you guys, there isn't anything you don't seem to want to accomplish you understand the importance of health care. will, i met you through mark mark and i both feel that if we only had the mask that people wanted to wear, we could really solve a lot of what is a bizarre cultural divide between people we think it a political issue, it's not it's a stylish shoe. can this concord the divide, will >> i remember traveling back and forth to asia in 1998 and then after the stars break in 2002 and 2003, '04, '05 why people wearing masks and context to what, and going through and now
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that we've all got hit hard you see why they continue to wear masks after the sars outbreak. i think people will continue to wear masks and masks like the super masks have other functionality, i think you're going to giving people an option like people wear sneakers and basketball shoes and a lot of them don't play basketball the same stuff happened for masks. there needs to be other functionalities that protect you. shoes are protective gear. they help your ankles out and your feet when you travel on terrain that can damage your feet, but we've long past looked at shoes as protective gear but they are cultural items that we go out and buy the masks should have the same type of attention to detail, love and care to where you're not look to keep other people safe. >> i totally agree matter in fact, will, i'm convinced what you're seeing now is a belief this is not our
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first pandemic there will be many more, not only but the first there will be many more. i want to stockpile yours when it's available when can i get one >> we go live on the 8th you can go to super mask.com and order yours and we'll ship shortly over to wherever your address is. >> wow i am going to get one. i have a stockpile of masks that are from the beginning and i want something that is stylish but does the job one of the things that i've learned about honey well, john, when you do filtration, it's not like -- i got one. i'm just putting it on now it's a "mad money" one it's good. i want filtration that's the equivalent with the top level mask can this give it to me >> well, we've certainly learned a lot from our experience in the industrial and health care setting with our n 95 and n 99 respirator business and we brought a lot of that expertise to bear here this particular super mask has a
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very unique patented filter design which we're very proud of that brings topnotch filtration without sacrificing usability or fashion. so i think we've tried to blend the best of both worlds while keeping a pretty clear line in terms of what is an industrial product and what's for commercial use and what's in the consumer segment will and his team will take hold of. >> will, i worked with honey well on mock designs i was pretty shocked what they did, what i wanted to do and took it to the next level. the cooperation between you and a traditional american company, you're a business person it not an issue. did these guys take your game to the next level >> we're blessed to have an awesome team with the guys to align and help us complete the thought. you know, i couldn't have imagined a better team to partner with so thank you, john, for putting us with the best engineers at
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honey well to help us complete this thought with super masks. >> i want to thank john for the other work he did with my mask competition and for your incredible giving nature and will, i don't know, man, if there is anything you can't do i know you as a business person before i knew you as musician because i'm culturally robbed. thank you for coming on "mad money" and congratulations, this is the mask i want it's not a piece of paper in front of my face thank you so much, guys. that's john, honey well safety and productivity solutions and will i am. i've got to tell you, this is a teamup that will make you think twice about not wearing a mask stick with cramer. >> announcer: coming up, will all investors kindly check your emotions at the door you need clear eyes to spot a top. cramer is taking his 2020 vision off the charts, next
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with the dow and the s&p hitting record highs today, foreclosing is slight ly lower, where do we go next? there is a lot to like but the current leadership groups had enormous runs. how much longer can it last? at times like this rather than get emotional about it, we need to avoid getting swept away by that feeling of u forya. so tonight we're going off the charts with the help of a legendary tom demark, tom is the pioneering head of demark analytics. of all my life i followed this man's stored history of timing the market much better than almost everyone for over a year now, ever since i would say lately better than anyone. for over a year we've been hearing about the first covid outbreak in china with a remarkable traffic record. he called the bottom last march.
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he called the pull back in late october along with the election day bottom and right now, demark is telling you precede with caution and he's expecting a near term top in the stock market with bond yields and bitcoins nice to have a contrary view here let start with the daily chart of the s&p 500 his methodology is about spotting key levels and key times where the actions likely to change course remember, this is predictive, not just coincident l. when it comes to the s&p, he's saying we're getting very close in terms of timing, he and his team look for a 13-session countdown pattern, 13 session countdown pattern that tells them when a rally should run out of steam the s&p needs two more days that fit the pattern. two days with a higher high and
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needs to see the peak around 4139 okay that's up a little more than 1% from here. that's roughly where you'd expect it to go after a couple of up days which would complete the sell countdown when those happen at the same time, doesn't have to be the same day, his method tends to reliably predict trend reversals. it could be a more modest move they nail in mid february and early september but because the timing indicators didn't cooperate, minor short term pull backs, which is exactly what we got. it's got variation to it here is another way to look at it in february and march the s&p had a pair of rallies that lasted nine trading days and produced 7% gains. the first was january 29th, february 9th, the second from ma march 4th to march 17th but it taken the s&p up 6%.
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that's what it looks like when a trend is about to exhaust itself okay exhausted. once the s&p peaks, it could have a floor of support around 3909 all right. we see the floor though, it breaks down below that level expecting serious carnage. be ware. if you zoom out with the s&p's w weekly chart, he notes we're facing the same up trend exhaustion the first time that happened since the bottom last march. remember, he's been bullish. this has been dead right this is his market how about the action in the dow jones industrial average the pattern here is identical to what we saw with the s&p two more sessions with the dow with a higher high and higher close and rallies 1.5% to the price target of 33959. might want to write that down, 33959, then the chart says this move will run out of steam okay now here is a corky one, though.
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the nasdaq, a little different because it's so tech heavy check out the daily action the qqq an etf that tracks the nasdaq 100 the 100 largest non-financial companies in the nasdaq co comp composite. it spent the next month getting hammered as money managers embrace the opening thesis and ditch the tech stocks last year's biggest winners a lot have fallen heavily. the rebounding hard off the lows up 11% and demark believes it has potential to climb another 5% from these levels purely based on the techs, he thinks there is more upside potential than the dow and s&p and don't forget, we started seeing nice rally in the high price to sales today but yesterday was all about fang in other words, demark's methodology says we could be on the verge of a counter trend move where the dow and s&p gave up gains and the nasdaq 100 plays catchup. it a bold call at a time when most money managers want to double down the great reopening
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trade. but demark made a lot of those over the last 13 months and usually right. now there is only one way we get a breakdown in the dow and s&p coupled with a rally in the nas. that's if the bond market changes course for stocks they have been marching to the tune of the bond market as treasury yields surge, the high flying growth names got slammed and the cyclical roared higher to roar llback some rotation the treasury yields need to go higher the ten-year treasury. the methodology predicted the bottom last august and now he says look out. peak just like the dow and s&p if the yield and ten-year gives up two more higher higher or closer in a row that signals a top for me, that's the lynch pin of the thesis if the yield and the ten-year finishes the countdown pattern and starts rolling over, which i
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think it might have been starting today that will drag the dow and s&p, which also the dow did go down today plus lots of money managers will figure they have the bond permission to buy tech can't resist bitcoin check out the daily chart of the king of crypto currencies that doubled in price since mid december i said i'm not a crypto expert my kin is stocks demark's system predicted major inflection points and now he's seeing an up trend exhaustion pattern in bitcoin wow. like he spotted the dow and s&p. nobody wants to hear that these people that talk about bitcoin demark's timing indicators are firing warning signs and if they reach the price target at 66347. you might want to hang on to that he's expecting a significant top, though. 14% gain from these levels but given the volatility, that's something to keep in mind. the bottom line, the charts
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interpreted by the legendary tom demark suggests we may be headed for a major reshuffling. the dow, s&p and long-term treasury yields could have two or three solid up days in a row before rolling over. doesn't mean they will stay down but if demark's predictions come true, you need to get a lot more cautious about the areas winning. much more "mad money" ahead including my exclusive with service now. to two hot ones could the deal improve your portfolio performance? i'm talking gamestop and amc in the course of your calls, rapid fire in tonight's edition of the lightning round is stay with cramer ♪ ♪ ♪
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say something about this market, it's lost interest in the software service stocks. i think it momentarily it doesn't mean the great growth companies stop it innovating a newly public cloud software outfit focused on experienced management is partnering up with cramer fav service now they quantify how services feel. they help automate repetitive tasks and integrate sentiment that customers have into their decision making. this is exactly what we want to see from softwares as hedge funds give stocks the cold shoulder eventually they will come back in style in the wall street fashion show because companies can't live without their products and when they do, you know which ones are winners. let's look at the partnership with the ceo, first time guest and president and ceo of service now.
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gentlemen, welcome to "mad money." >> hey, thanks for having us on, jim. >> absolutely. ryan, i think when i think about creating a culture of action how can a culture of action be paired with service now to do great for your clients >> jim, look, most people come on these days. i listen to your show. i watch it they're talking about digital transformation when reality is most companies are actually going through an experience transformation. they really want to get into the hearts and minds of their customers because us as consumers, as employees, we've changed. we actually know what a good experience looks like. we want to help and only work with brands who are providing a good experience and that's the world that we live in today and so we created a new category it's a $60 billion market, xm or experience management where we're a cloud native platform that gives management team data
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of customers employees products and brands to make decisions, which really focus on the hearts and minds of their consumer and their audience and drive change and so we think about driving change in a partnership with service now and rewiring how organizations make decisions it's a match made in heaven. so we're super excited today. >> so bill, one thing i know about you, the customer comes first, second and third. it is just your life blood so put me in the room, say, with a university client or maybe an auto client, a restaurant client where you are doing your best and you together are going to do better. >> i'm happy, too, jim good to be back with you empathy at mass scale is the competitive did ifference of ths generation how do you take sentiment analysis from consumers and employees and essentially put that into a system of action so you can rethink the way you run
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your business for great outcomes really creating the loyalty effect in fact, we work with them on a well-known restaurant that rethought the whole customer support and operations model based upon the sentiment of the customer themselves, and, you know, the hidden bep nefit is employees love it because they want to solve the problems and serve the customer at their very best and that's what the work flow automation platform of service now does it actually enables work to work better for people. you mentioned university, jim. we're working with many universities but one in particular in this future of work world where people work from anywhere, you have to get them their computer gear, networking gear. you have to get students and teachers up and running flawlessly and you have to listen to them on what is working and not. so we're working with the best universities one in particular
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that is harmonized their operation. it an exciting partnership, jim. i have a long history with them so a lot of fun for me. >> i like your enthusiasm for it ryan, we don't know each other but i'm thinking a friend of mine who takes business school tells me that people are using qualtrix, 99 out of 100 are using your product to do case studies which gives a leg up in the real world. >> we have 700,000 students graduating on it it's true he becoming the new way to operate an organization and the real crux of it is how do you run your business from the outside in too long we've run from the inside out but for the first time ever, we have a single platform in the cloud that allows you to bring all of those voices together in realtime and make decisions, and that's truly what it's about. i was with a group of ceos a couple weeks ago where we had a
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ceo from a major credit card company, one of the top credit card companies and a major airline and leading hotel chain. every single one of them is using qualtircs. 80% of their em myployees went m and customers are traveling and booking differently and they have to run a new playbook and go through the experience transformation and they can do that now, which is pretty exciting. >> so bill, fill us in you've got your -- you've got your finger on the pulse of better than anyone i knowi indu like things are good the pandemic ending, people coming back to work but the business worldwide for you, may friend, is pretty darn good. >> it's excellent, jim when you think about 20 as an example, you had a gdp situation
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that was declining in the world economy. yet, at the same type, the investment in digital transformation was accelerating. think about a world that begins to open up where gdp starts to climb and digital transformation continues to accelerate at an even faster pace i think this is a really nice blend of opportunity for companies that are digital truly focused on customers and employees and have great partnerships like the one we're announcing here to fundamentally change the game and the way they serve people. >> now, i've got -- to tell you, one of the things that's most fascinating, go to the website with fabulous videos this under armor is accessible before you came in it's like people said hey, this shoe looks good or maybe there is five runners that like it you've changed it. you've made it so it important
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describe how you changed that culture. >> it's truly about reach. if you look at the pandemic and what happened to companies like uber, right? everything came to a standstill where people didn't want to leave or travel at all but uber was able to reach out. they were able to leverage qualtrics and say people trust this brand they actually want things delivered to them and uber pivoted and did it quickly with a touchless service where they could drop off prescriptions, alcohol, groceries and uber eats is now a huge part of the business going forward and this is the type of experience and the touch and the reach that you don't need to go with the small group or a small subset of employees. you can actually personalize the experience for everyone. >> yeah, i was just shocked -- >> that's the winner. >> people are able to pivot with your combination with your two companies if their biz isn't strong enough they can pivot and know it will be done with
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confidence both of you gentlemen are just sensational. ryan, it's great i finally got to meet you. i think qualtrics is doing great things i would hate to lose them but you were very positive in your relationship i know that and all of you guys worked together. thank you to the ceo of service now. what a win the company has been and ryan smith, welcome to the show, sir. the executive chairman of qualtrics. great to see you. >> thanks. >> thanks, jim. >> i'm telling you giuys, the market will shift again back to these two companies. it's not always going to be with the red hrailroads or airlines. that's not the way the market works. stick with cramer. >> announcer: stick around. >> may i make a suggestion i would stay with cramer. >> announcer: the lightning round is coming up next.
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it is time, it is time for the lightening round buy, buy, buy, sell, sell, sell and then the lightning round is over are you ready ski daddy? time for the lightening round. let start with doc in new york. >> caller: hey, jimmy chill, ba, ba, boo-yah. >> i like that spirited. >> caller: think about getting a vaccine but i think the bigger valuation is what their ocular
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regeneration. >> this is a fphilly company if they can get cartilage to regrow, it huge. just that, though. i need to go to ed in west virginia, ed >> caller: hi, jim. >> ed. what's up? >> caller: well, with the development of 5 g, it's my understanding that the 5 g towers will be smaller and closer together. >> yes. >> caller: tran the traditional cell towers. >> true. >> caller: with this new technology, my question is what does this mean for the manufacturers of the traditional cell towers like american tower corporation? >> what it says is you shouldn't buy american tower you should buy crown castle. that's the better one. cci my travel trust -- look at that rocket ship that's where i would go. william in michigan, william >> caller: hi, jim, thank you for taking my call. >> my pleasure, william. >> caller: i am looking to adjust my portion of my
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portfolio by transitioning from tech to cyclical per your recommendation the company announced notes, however, the fend mentals are attractive. >> that's vital. this is rear earth and vital i'm on board and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade >> announcer: coming up, what happens when a stock starts to weigh heavy on the warms that pumped it up why a company must do the heavy lifting, next. ♪♪ ♪♪
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right now there are way too many investors with what i call unrealistic expectations who think every stock can be like gamestop or tesla. if the shareholders would just have the fortitude to keep buying and holding the line. >> buy, buy, buy. >> i find this whole narrative insane you can't look at the shareholder base in a vacuum at the end of the day, stocks represent value in companies and what they do matter but when the cohort takes over the flow of certain stocks, they want to call the shots and they expect
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management, all the shareholders to obey. frankly, that is a recipe for disappointment don't get me wrong, it's important to though what your fellow shareholders are up to. look at the fund that borrowed tons of money and imploded when that situation unfolded, i saw big market, they were premarket trades maybe 8:30, 9:00 i figured something was wrong with the companies or maybe in china. goldman sachs dumping the shares they repossessed to protect their own balance sheet. great job by goldman but this idea that the shareholder base can and will a stock higher, well, let's say i think it's misguided they want to pull a mel gibson in brave heart everybody shouting hold to each other until they wipe out the enemy cavalry. that's crazy let's not forget that movie does
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not end well for mel gibson. what is wrong with the hold the line strategy? simple, could only go so far right now there are just two stocks being kept higher gamestop and amc gamestop hopes a new board member can shake things up, certainly enough to justify the 900% move and amc is up and maintaining attitude based on a belief the short sellers have to be wrong and the stock can rally because it's the last movie theater standing however, in the last two business days, both amc and gamestop have made expanded moves to issue new stock so they can raise cash the short balance sheet and latter one to give firepower to turn things around amc is looking for authorization to sell 500 million shares or $5 billion worth of stock they most likely wouldn't use that not the full amount. that would be wrong. at least the ceo is thinking big and won't have to ask permission
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again if shehe wants to go backo the well, spike in the stock, sell or drop raise money. gamestop is offering less than a billion dollars and doing so at the market in part because they don't want to hurt the share price. i immediately when i read about this, he did it on squawk on the street but i applauded these moves. amc is very expensive debt that i really, really don't like. and american buy back got a huge discount, something to give the earnings a huge boost even if you account for delusion he said he can use the shares to help beat the short sellers who play havoc with the stock. gamestop wants the money to give more options hey, look, the future is grim for brick and mortar so they need to make an acquisition to change the stripes or try something totally new. maybe the gaming palace is filled with players competing for crypto currency.
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if you care about the future of either company or long term trajectory of the stocks, issuing shares up here is the right move but the hold the line crowd, they hate these offerings. oh, boy, they despise anyone who defends them the way they see it, the companies are is to being them in the back and siding with the short sellers. wrong, that is totally wrong amc and gamestop need money raising capital is good for both companies and what is good for the company should be good for the stock. none of the executives want to see shares go lower but thanks to the paranoid style of american investing, anyone that defends the moves gets racked over the coals every time i talk about the stuff on air, i might as well be m moonlighting my twitter account on fire. jimmy chill blocks people and they can't and i'm not engaging, ha i wish investors weren't being led astray by the whole fa lose
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p -- philosophy that's not how the stock market works and i'm on your side anyway i hope they wake up before they get hurt i like to say there is always a bull market somewhere and i promise to find it for you on "mad money." i'm jim cramer see you tomorrow "the news with shepard smith" starts now "the news with shepard smith" starts now double mutant variant. explaining the new term in our covid vocabulary i'm shepard smith. this is the news on cnbc >> it is premature to declare a victory. >> the midwest surge covid concerns on the rise doctors in michigan pinpoint the problems they confront, the risk of spread across america >> it's unfortunate. it's sad every time you turn on the news, there's something like this happening. >> a navy medic shoots two people then cops gun down the medic at an army base

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